Purchasing Your Next Automobile

Some interesting facts:

  • The average age of an automobile in the U.S. is now approaching 12 years
  • The average purchase price of a new automobile is well over $30,000

If you are in the market to upgrade to a newer car, here are a couple of tips that can save you some money.  The trend toward leasing new cars has increased in recent years and in 2016 over 30% of new car sales were leases.  A common length of a lease is 36 months meaning there will be an ample supply of near new used automobiles coming available, many with low miles. You can locate the car you are looking for via the internet making finding the right car much easier than visiting dealerships (leased cars must be returned in good condition like rental cars).  Below are a few tips to save money and protect yourself.

  • Extended auto warranties are a sound idea given the complexity and features now offered, however these same warranties are available online for much less than through a dealer. 

  • If you are purchasing a new car it is wise to purchase “gap” insurance in the event something bad were to happen to that new car. Gap insurance is particularly important when purchasing on a time pay arrangement. If the car were a total loss, it is possible you could find yourself owing more to pay off the loan than your insurance will cover.

  • And finally, be cautious about other dealer add-ons. Remember those tinted windows rolled into a 5- or 6-year payment plan are expensive when compared to having the windows tinted at a local custom shop.

Smooth shopping.